Ethanol’s Discount to Gasoline Tightens on Corn Supply Concern
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Ethanol’s discount against gasoline tightened to the smallest in more than four months on concern that slower corn planting will boost the cost of producing the biofuel.
The spread contracted by 11.94 cents to 25.65 cents a gallon after an Agriculture Department report showed farmers planted 5 percent of the corn crop as of yesterday, compared with a five-year average of 31 percent. Corn is the primary feedstock for ethanol manufactured in the U.S., with one bushel making at least 2.75 gallons of the fuel. Renewable Identification Numbers, or RINs, advanced.